Rajeev Rawat 2007 in and Outs

8/3/2019 Rajeev Rawat 2007 in and Outs

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Rajeev Rawat

BI Results, LLC

October 24, 2007

The Ins and Outs ofOpen Source Business Intelligence


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www.BIResults.com. Copyright 2007, BI Results, LLC. All Rights Reserved

Expensive

Locked-in

Complex

Business

IntelligenceExpensive

Locked-in

Complex

Traditional
http://www.biresults.com/http://www.biresults.com/


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penSourceOpen

Source

DynamicInnovativeCompelling

DynamicInnovative

Compelling

Business

Intelligence


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www.BIResults.com. Copyright 2007, BI Results, LLC. All Rights Reserved 4

Humor or Critical Thinking?


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Business Intelligence

What is BI

Why is BI Important

Example of BI at work

Decoupling the BI drivetrain

The essence of BI

Does Open Source BI

work?

Proof points

Key factors

Critical perceptions

How to assess whether

An Open Source BI

solution fits your

needs?

Criteria


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Generally Used Definition

Business intelligence (BI) is a broad category ofapplications and technologies for gathering, storing,analyzing, and providing access to data to helpenterprise users make better business decisions.

BI applications include the activities of decision supportsystems, query and reporting, online analyticalprocessing (OLAP), statistical analysis, forecasting, anddata mining.

Business intelligence applications can be:

Mission-critical and integral to an enterprise's operationsor occasional to meet a special requirement, enterprise-wide or local to one division, department, or projectcentrally initiated or driven by user demand
http://www.biresults.com/http://searchsoftwarequality.techtarget.com/sDefinition/0,,sid_gci211585,00.htmlhttp://searchdatamanagement.techtarget.com/sDefinition/0,,sid92_gci211894,00.htmlhttp://searchdatamanagement.techtarget.com/sDefinition/0,,sid92_gci211894,00.htmlhttp://searchwinit.techtarget.com/sDefinition/0,,sid87_gci212065,00.htmlhttp://searchcio.techtarget.com/sDefinition/0,,sid1_gci213888,00.htmlhttp://searchcio.techtarget.com/sDefinition/0,,sid1_gci213888,00.htmlhttp://searchsqlserver.techtarget.com/sDefinition/0,,sid91_gci211901,00.htmlhttp://searchdatamanagement.techtarget.com/sDefinition/0,,sid19_gci214137,00.htmlhttp://searchsqlserver.techtarget.com/sDefinition/0,,sid91_gci211901,00.htmlhttp://searchsqlserver.techtarget.com/sDefinition/0,,sid91_gci211901,00.htmlhttp://searchdatamanagement.techtarget.com/sDefinition/0,,sid19_gci214137,00.htmlhttp://searchcio.techtarget.com/sDefinition/0,,sid1_gci213888,00.htmlhttp://searchcio.techtarget.com/sDefinition/0,,sid1_gci213888,00.htmlhttp://searchwinit.techtarget.com/sDefinition/0,,sid87_gci212065,00.htmlhttp://searchdatamanagement.techtarget.com/sDefinition/0,,sid92_gci211894,00.htmlhttp://searchsoftwarequality.techtarget.com/sDefinition/0,,sid_gci211585,00.htmlhttp://www.biresults.com/


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Gartner

..Information Democracy will emerge in forward-thinkingenterprises, with Business Intelligence information andapplications available broadly to employees, consultants,customers, suppliers, and the public.

The key to thriving in a competitive marketplace is stayingahead of the competition. Making sound business decisionsbased on accurate and current information takes more thanintuition.

Data analysis, reporting, and query tools can help businessusers wade through a sea of data to synthesize valuableinformation from it - today these tools collectively fall into acategory called "Business Intelligence."


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Business Process

RFID Tags on shipments

Tracking in motion

Delivery on shelf

Revenue per item

Inventory turns mappedto profit per shelf foot

Turns faster or slower

Best Practices from HQor Replenishment

Operations

LogisticsManuf. to Shipper

Shipper to RetailWarehouse

Warehouse toRetailer

Packaging,PromotionRetailer to shelf profitplan (turns,customer, promos)

TurnsSale, turns,overstock, or lostsales

BI ExamplesBusiness Results

Integrated businessrules and IT tools

Customer experience.

Loyalty

Business insights toenable action

Excel to compete.

Competitive advantage

Business Process

RFID Tags on shipments

Tracking in motion

Delivery on shelf

Revenue per item

Inventory turns mappedto profit per shelf foot

Turns faster or slower

Best Practices from HQor Replenishment

Operations

LogisticsManuf. to Shipper

Shipper to RetailWarehouse

Warehouse toRetailer

Packaging,PromotionRetailer to shelf profitplan (turns,

customer, promos)

TurnsSale, overstock, orlost sales

Business Results

Integrated businessrules and IT tools

Customer experience.

Loyalty

Business insights toenable action

Excel to compete.

Competitive advantage

Systems

Infrastructure

Connectivity

Manufacturer,Shipper,

Retailer

POS systems,

Server,

Applications,Networks,

Storage,

Compatibility foranalysis, reports,

triggers

Systems

Infrastructure

Connectivity

Manufacturer,Shipper,

Retailer

POS systems,

Server,

Applications,Networks,

Storage,

Compatibility foranalysis, reports,

triggers


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Typical BI Stack

Analysis sw accesses data foranalysis and presentsinformation insights for actions

Others

Profile

Classify

SecurityAuthentication

Compatibility across theenterprise and collaborating

systemsData and data quality

Data formats and datamodels

Data is transferred to systemsoperating systems andapplications to be stored in astructured form

Data is generated at diversepoints by various applicationsrunning on a variety ofplatforms


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BI Solutions Drive Train

Load

Analytics Reporting

Repository

ODS

Transac-tional

systems

Line ofbusinesssystems

Sources

Data Warehouse


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Drive Train Compatibility

Load

Analytics Reporting

Data Warehouse

Repository

ODS

Transac-tional

systems

Line ofbusinesssystems

Sources

Ab Initio

Erwin

IBMInformatica

Business

Objects

CognosMicroStrategy

SAP

IBM

MicroSoft

OracleSAP

Teradata

CRM

ERP

GL

S/DCM

CRM

ERP

GL

S/DCM Dash-boards

Dash-

boards

ReportsReports

Score-

cards

Score-

cards

Fair Isaac

MicroSoft

OracleSAP

SAS


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Increase in business velocity is acceleratingevent-driven approaches to operations

3 Days

8 Hours

30 minutes

20 minutes3 Days

1 Day

1 Day

6 Weeks1 Month

5 Days

45

10

05

3030

05

15

241

3-1 days

Document transfer

Call center inquiries

Trading analytics

Airline operationsPhone activation

Calculate fin. positions

Supply chain updates

Build-to-order PCLoad data warehouse

Trade settlement

Seconds

Minutes

Hours

Source Data from Donald Feinberg, V.P. and Distinguished Analyst, Gartner

From To


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BI usage, a strategic advantage

Source: CIO Insight Oct 2007 Survey. http://www.cioinsight.com/slideshow_viewer/0,1205,l=&s=300&a=216891&po=3,00.asp


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BI applied across the enterprise functions

Source: CIO Insight Oct 2007 Survey.

http://www.cioinsight.com/slideshow_viewer/0,1205,l=&s=300&a=216891&po=5,00.asp


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BI impact on performance is clear

Source: CIO Insigh t Oct 2007 Survey. http://www.cioinsight.com/slideshow_viewer/0,1205,l=&s=300&a=216891&po=5,00.asp


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IDC: Market is growing

IDCs definition of the business analytics software market includes 11 datawarehousing and performance management tools and applicationssegments.

According to IDC, the business analytics software market reached $19.3billion in 2006, representing a growth rate of 11.2 percent. The authorsexpect the worldwide business analytics software market to continue to

grow at a healthy compound annual growth rate of 10.3 percent over thenext five years. Furthermore, IDC has made the following predictions aboutthe future of business analytics:

- Business analytics solutions will increasingly incorporate functionality

for unified access and analysis of structured data and unstructuredcontent, business process management, collaboration and workflow

management functionality.

- A broader set of organizations (in all geographic regions and of allsizes) is beginning to look at business analytics not just as a set ofreporting functions, but as a means to gain competitive advantagethrough better decision management and process optimization.


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Essence of BI

Pervasive

Infrastructure integration

Across the enterprise applications

All users benefit

Precise decisions faster

Faster executionCompetitive requirement


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Traditional vs. Open Source BI

Typical concerns of traditional BI users

Key differentiators of Open Source BI

Expensive

Locked-in

Complex

Expensive

Locked-in

Complex

Dynamic

Innovative

Compelling

Dynamic

Innovative

Compelling


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Traditional BI deployed CIO/BI/DW managers

top concerns (Source: BI Results survey 2006)

BI education, awareness, and executive sponsorship

Disconnected business and IT visions

Cost to upgrade functions scalability, performance, volume

Infrastructure and applications compatibility with silosNo simple path to creating enterprise-wide repository

User adoption and use of expensive functional capabilities

Skills and time to implement upgrades

High cost of switching to another vendorTeamwork among vendors

Turnover on vendor technical team


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Drive train connectivity,a major BI issue



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Key differentiators ofOpen Source BI

Cost

Flexibility

Standards based solutionsEase of adoption

Faster functionality updates

Best of breed functionality from user community


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Open Source BI adoption is growing



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Open Source BI: a compelling competitive forceGartner:Open-source products accounted for a 13 percent share of the $92.7 billion software market in 2006,but should account for 27 percent of the market in 2011 when revenue is expected to be $169.2 billion

Of 295 respondents in the U.S. and Europe found that open source software usage stood at 23.6percent, and this number is set to grow to 25.9 percent over the next year,

"Open-source software is going to erode proprietary sales revenue by offering less-expensive or freealternatives, expanding the total market potential by meeting the demands of SMBs for affordablesolutions, and creating a new business model to provide selection, customization and managementservices

Most commercial software products will include elements of open-source code by 2010.

The open-source software being used, 49.7 percent is used in mission-critical situations, with 50.3percent being used in non-mission critical situations. That compared to 59 percent of commercial orproprietary software and 58.5 percent of internally developed software which is used in mission-criticalsituations.

..market accelerators to open source, the low barriers to entry and increased return on investment, theavailability of high-quality solutions at low cost, the access to open standards and developmentprocesses, vendor independence and flexibilityresulting in investment protectionand fasterprocurement and a shorter development time.

Among the market inhibitors, many of which are perceptions rather than reality, are concerns aboutmigration and skills transfer, internal development, support and maintenance costs, quality assurance,and the large number of license with conflicting terms.


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Gartner: Ignoring Open Source not an optionOpen source "the biggest change in corporate IT since distributed computing."

"Open source is not a niche, not a fad." And on the competitive front "competing against opensource is tilting at windmills.

- By 2011, Gartner predicts that at least 80% of all commercial software solutions will includesubstantive open source.

- Open source is being used equally for mission critical and non-mission critical applications.Gartner's survey shows 49.7% of open source usage is being done for "mission critical"

applications, as compared to 59% for proprietary software and 58.5% for internal development.

-- Adoption is heading for more mainstream adoption by 2012 and that the priorities will be: costand risk

-- Develop an open source policy saying that open source adoption "has to be managed"alongside existing software.

-- Open source has achieved dramatic success in the infrastructure layer: operating systems(Linux), application servers (JBoss, Tomcat), DBMS (MySQL), and security (Snort). The nextwave of adoption will be at the application level: CRM, content management, supply chainmanagement, e-learning, etc.

-- In most cases there is better quality and lower Total Cost of Ownership (TCO).


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0

2

4

6

8

10Business Need

BI functionality

requirement

Risk profile

Ski lls match

Systems environment

Pricing

Vendor maturity

Solution maturity

Criteria for assessing Open

Source BI alternative Business need

BI functions

requirement Risk profile

Skills match

Systems environment

Pricing

Vendor maturity

Solution maturity


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Source BI alternativeBusiness Need

- Urgency- Sponsor- Users- Bottlenecks- Data sources- Data quality- Data owners

- Businessneeds

Risk Profile

- Financial- Operational- Performance- Skills gap

BI functionalityRequirement- Computations- Integration- Reporting

- Time- Embed-ability/SOA

- Repository

- Dashboard/portal

- OLAP UI

- OLAP Server

- ETL

- End-User Ad Hoc- Alerts

- Semantic Layer

- Security

- Scheduling

- OSS Communityconnection


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Source BI alternativeSkills match

- BusinessUsers

- Systems Users- Current vendor

teams- New vendor

team

Pricing

- Licenses- Maintenance- Support- Transition costs- Upgrades- Renewals

Systemsenvironment

- Server andstorageconnectivity

- Data integrationand interchange

- Applicationcompatibility


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Source BI alternativeVendor maturity

- Customersatisfaction

- Install base

- Requirementsgatheringprocess

- Referenceaccounts

Other

- Contributes code thatextends the functionalityand value of the coreproducts

- Indemnification

- OSS CommunityConnection

- Creates projects that

surround the core

products with utilities,

localizations, and

integrations

-Tests new releases of the

products

- Reviews documentation

Solution Maturity

- Availability duration

- Install base

- Tools compatibility- Standards compatibility

- Mature, world-classreporting products

- Ready-to-use out of the box

- ISV-ready: embeddable &extensible

- Professionally localized &internationalized

- Meets complete continuumof BI needs

- Reporting, Analysis,Data Integration


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Consolidate Assessment for business and

systems convergence, consensus

Criteria

Urgency

Sponsors

Users

Bottlenecks

Sources

Data Quality

Data Owners

Computations

Integration

Reporting

TimeRisk: Fin

Risk: Oper.

Risk: Transac

Business BI functionality Risk Skills Systems Pricing Vendor SolutionNeed requirement profile match environ maturity maturity

0

2

4

6

8

10Business Need

BI functionality

requirement

Risk profile

Skills match

Systems environment

Pricing

Vendor maturity

Solution maturityShared


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Open Source BI: What if

the CIO, CFO, CEO saved 5%-25% on

licensing costs at a previous company?

What will you be RIGHT BACKwith?


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Open Source BI: Youre on the ball!

YOUWEVE FOUND THREE WAYS TOLEVERAGE OPEN SOURCE -

Criteria III IIIROIPaybackSavingsSchedule

Risk


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Open Source BI: You have a plan

YOUWEVE FOUND THREE WAYS TOLEVERAGE OPEN SOURCE -

Criteria III IIIROIPaybackSavingsSchedule

Risk

You can keepyour job


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Open Source BI: Lead the change

YOUWEVE FOUND THREE WAYS TOLEVERAGE OPEN SOURCE -Criteria III IIIROIPaybackSavingsSchedule

Risk

You can keepyour job

Fornow

O S B i


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Open SourceBusinessIntelligence

Open Source BI is a competitive differentiator.

It can reduce cost and provide incremental

functionality.

Learn whether or where it fits in your scope orneeds.

Leverage for competitive advantage.

Grow skills to advance your career.

Open Source BI is a competitive differentiator.

It can reduce cost and provide incremental

functionality.

Learn whether or where it fits in your scope orneeds.

Leverage for competitive advantage.

Grow skills to advance your career.

Your opportunity to shine


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Customer Examples

Lance Walter, VP Marketing


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Pentaho Introduction

Worlds most popular enterprise open source BI Suite

2 million lifetime downloads, averaging 100K / monthFounded in 2004: Pioneer in professional open source BI

Management - proven BI and open source veterans

from Business Objects, Cognos, Hyperion, JBoss, Oracle, Red Hat, SAS

Board of Directors deep expertise and proven success in open source

Larry Augustin - founder, VA Software, helped coin the phrase open source

New Enterprise Associates investors in SugarCRM, Xensource, others

Index Ventures investors in MySQL, Zend, others

Widely recognized as the leader in open source BI
http://code.google.com/http://www.pentaho.org/index.php?option=com_content&task=view&id=139&Itemid=238http://www.intelligententerprise.com/showArticle.jhtml?articleID=190700107http://www.redherring.com/article.aspx?a=18126http://sourceforge.net/potm/potm-2006-10.php


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Pentaho Subscription: Minimizing Risk in BI


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Pentaho Technology Fundamentals

Componentized and modular

Service-implemented architecture

Built from the ground up as a

set of services

Exposed via AJAX and WebServices

100% Java EE server side

Scalable, standards-based

Web-based, thin-client end user

interfacesEclipse-based design interfaces

Embedded workflow / process

engine


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Pentaho BI Platform at OrbitzOrbitz, Global Travel Services Company

Key Challenges

Self-service reporting for extranet applicationserving travel agents

Pentaho Solution

Pentaho Reporting Server Professional Edition

Red Hat Enterprise Linux, JBoss ApplicationServer, MySQL database

2,500 usersResults

Integrated, self-service reporting

Application selected as 2006 JBoss InnovationAward winner

4-year, $1.5M TCO reduction

Why PentahoCost of ownership

Embeddability within custom web-basedapplications (security, user interface, etc.)


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Pentaho Reporting

Access and format data from

disparate sources

RDBMS, XML, OLAP

Produce in popular formats

Multiple report types

Operational

Analytical

Financial

Directly against sources or usingcentralized metadata layer

pixel perfect report designer

Web-based business user ad hoc


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Pentaho Reporting at Terra Industries (NYSE: TRA)

$2B Global Nitrogen Products Leader

Key Challenges

Aligning pricing and delivery with inventoryand supply

Obtaining an integrated view of operationsacross multiple disparate operational systems

Pentaho Solution

Pentaho Reporting

Pentaho Data IntegrationSourcing data from SAP R/3, Peoplesoft,Tabware, and home-grown systems

MySQL Enterprise

Results

Rapid time-to-value via embedded operational

reporting for front-line workersLong-term strategic benefits from single,integrated view of company-wide information

Why Pentaho

Functionality and flexibility

Cost of ownership

We chose Pentaho because it has afull range of functionality, exceptional

flexibility, and a low total cost of

ownership because of its open source

business model. We can start

delivering value to our business usersquickly with embedded, web-based

reporting, while integrating our

disparate data sources for more

strategic benefits down the road.


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Pentaho Analysis

ROLAP architecture

Works with all popular opensource and proprietary DBs

View data dimensionally

i.e. Sales by region, by channel,by time period

Navigate and explore

Ad Hoc analysis

Drill-down from year to quarter

Pivot

Select specific members foranalysis

Web-based or Excel front ends


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Pentaho Analysis at Frontier Airlines (NASD: FRNT)Frontier Airlines

Key Challenges

Understanding and optimizing fares to ensureMaximum occupancy (no empty seats)

Maximum profitability (revenue per seat)

Pentaho Solution

Pentaho Analysis (Mondrian)

BizGres MPP database (Greenplum)

500 GB of data, 6 server cluster

Results

Comprehensive, integrated analysis to setstrategic pricing

Improved per-seat profitability (amount notdisclosed)

Why Pentaho

Chose Greenplum and Mondrian over Oracle

Rich analytical and MDX functionality

Cost of ownership

The competition is intense in theairline industry and Frontier is

committed to staying ahead of the

curve by leveraging technology that

will help us offer the best prices and

the best flight experience. [theapplication] fits right in with our

philosophy of providing world-class

performance at a low price.


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Pentaho Dashboards

Tight business process integration

Embedded workflowCan receive events from or triggerevents in external systems

Pentaho Open BI Suite Integration

Comprehensive auditing of user

activity, performance and data accessContext-sensitive drilling to reports oranalysis

Integrated security, scheduling,alerting, portal integration,

Modern, Standards-based Architecture

J2EE and AJAX providing scalability,portability, and integration

All components exposed as web-services

JDBC 2.0 compliant


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Pentaho Dashboards at Boyne ResortsNorth Americas Largest Family Run Four-

Season Resort Company

Key ChallengesUnderstanding customer behavior and customerloyalty to drive marketing programs

Analyzing profitability of resorts, food service

Pentaho Solution

Pentaho Dashboards, Reporting, and Analysis.replacing Crystal Reports from Business Objects

Pentaho integration with Google Maps

Microsoft Windows, SQL Server

Results

Critical insight into customer trends to maximizeresults from marketing programs

Primary marketing dashboard delivered in lessthan one day

Why Pentaho

Breadth of functionality in open source

Ability to deliver results quickly

Cost of ownership

Weve advanced a major stepforward for our business users by

leveraging PentahoWith professional

support and a comprehensive BI

offering from Pentaho, weve

significantly upgraded our functionalcapabilities for a fraction of the cost

of proprietary alternatives..
http://www.boyne.com/


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Boyne Resorts Application Example

NOTE: Data and Image have been modified to protect confidential info.

Color-coded

pins

User-defined

thresholds

Breakdown of

stays by

resort in

selected city

Full list of cities and

total stays (#

removed)

Zoom in

gauge

showing

visits / city


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Pentaho Data Mining

Rich analytical capability

49 data preprocessing models76 classification/regressionalgorithms

8 clustering algorithms

15 attribute/subset evaluators +

10 search algorithms for featureselection

Graphical interfaces

Exploratory data analysis

Experiment execution

Process / flow modeling


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Pentaho Data Integration

Rich Feature Set

Enterprise-class performance andscalability

Broad Database Support

100% Meta-data Driven

Graphical, model-driven design

Mature, 4th generation product


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Pentaho Data Integration at ZipRealty (NASD: ZIPR)

National Real Estate Brokerage

Key Challenges

Measuring and optimizing agent performance,customer satisfaction, and marketing ROI

Getting an integrated, strategic view acrossmultiple operational systems

Pentaho Solution

Pentaho Data Integration

Red Hat Enterprise Linux, MySQL databaseContinued use of proprietary BI tools(MicroStrategy)

Results

Three-fold performance increase, 8 hourreduction in batch load times

Simplified maintenance and reduced costs

Why Pentaho

Functionality and flexibility

Professional support

With professional support andworld-class ETL from Pentaho, we've

been able to simplify our IT

environment and lower our costs.

We were also surprised at how much

faster Pentaho Data Integration wasthan our prior solution.
http://www.ziprealty.com/


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50

Questions??


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Contact Information

If you have further questions orcomments:

Rajeev Rawat, BI [email protected]

Lance Walter, Pentaho

[email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]

Documents

Rajeev Rawat 2007 in and Outs